The days of the dollar as the world's “reserve
currency” may be drawing to a close. In August,
foreign central banks and governments dumped a
whopping 3.8% of their holdings of US debt. Rising
unemployment and the ongoing housing slump have
triggered fears of a recession sending wary foreign
investors running for the exits. China, Japan and
Taiwan have been leading the sell off which has
caused the steepest decline since 1992.